Displaying items by tag: GCW135

Belgium: CBR, part of HeidelbergCement Group, has announced that it plans to close its Harmignies white cement plant in Belgium.

Reasons for the potential closure include structural difficulties, high logistics and production costs, an unfavourable geographical location and a decline in the market for white cement. Although a number of restructuring measures were implemented in 2007 and 2013, in addition to investments aimed at lowering production costs, these were not enough to offset the challenges facing the plant.

If the closure goes ahead, 97 jobs could be affected. CBR management and staff representatives will enter into a period of consultation regarding the procedure.

India: Legal metrology officials have conducted surprise checks on cement warehouses at Nacharam and Orient Cement facilities in the state of Andhra Pradesh. The officials registered six cases pertaining to various violations on 23 January 2013 and also suspended a district inspector from Adilabad for dereliction of duty.

Legal metrology representatives raided warehouses owned by Birla A1 Premium Orient Cement Ltd, Maha Shakti Cement and NCL Industries Ltd in Nacharam, Andhra Pradesh and found 50kg cement bags that were light by 20-1000g. Following the raids, the officials seized 8210 cement bags from three warehouses.

Also on 23 January 2013, metrology officials conducted searches on Orient Cement Industries in Adilabad, Andhra Pradesh. The officials registered cases for using packing machines without getting them verified by the department.

S Rajeshwar, district inspector of Adilabad, Andhra Pradesh state, was suspended for earlier visiting Orient Cement Industries and deliberately coming back without finding any violations.

US: Colombia's Cementos Argos announced an agreement with US-based Vulcan Materials for the acquisition of cement, concrete, blocks and port assets in Florida, USA worth a total of US$720m. The acquisition will consolidate its participation in the growing market in the south east of the US.

The assets that are part of this transaction increase the Cementos Argos' installed cement capacity by 3.5Mt/yr, thanks to the integrated cement plant Newberry, Florida (1.6Mt/yr) and grinding mills in Tampa and Port Manatee (1.9Mt/yr combined). The deal also features 69 ready mix concrete plants with 372 mixers and an annual production capacity of 3.3 million m³ and 13 concrete block production plants.

"This new transaction fits perfectly with the company's growth strategy, not only for the size and quality of the assets but also because of its privileged location, the growth potential and its complementary operation with our current assets," said Jorge Mario Velasquez, CEO of Cementos Argos. "We are doubling our cement production capacity in the United States, in a market like Florida, where the growth forecast for the coming years is expected to double the already encouraging growth estimates. Florida is one of the fourth largest state economies, with the highest cement consumption and population of the US."

Through this acquisition, Cementos Argos becomes the second-biggest producer of cement in Florida and in the south-east of the US. With this, the company will achieve a total installed capacity, in all of the locations in which it has a presence, of 20Mt/yr.

Brazil: Brazil's antitrust regulator is likely to impose US$1.3bn of fines on six cement producers that were allegedly part of a cartel in the Latin American country.

On 22 January 2014, four of the five members of the board of Brazil's Administrative Council for Economic Defense (Cade) voted for the penalties, while the remaining member requested a review of the process. Under the regulator's rules, during the review period Cade members can change their votes. Cade didn't offer a timetable for a final decision.

According to the current proposal, Brazil's Votorantim Cimentos would be fined US$657m and Switzerland's Holcim would receive a penalty of US$214m. Itabira Agro Industrial would be fined US$173m, Cimpor Cimentos would receive a penalty of US$126m and InterCement, a subsidiary of Camargo Correêa group, would be fined US$102m. In addition, Itambe would receive a fine of US$37.1m. Representatives for companies involved in the investigation couldn't be immediately reached for comment.

Cade said that the cement cartel, which allegedly existed from 1986 - 2007 according to the regulator's investigation, led to increased prices that were passed on to consumers.

China: The city of Beijing will ban the construction of new oil refining, steel, cement and thermal power plants as well as the expansion of existing projects, in accordance with the government's latest policy document aimed at tackling air pollution.

The ban will take effect from March 2014. The policy document, which was approved by local legislature in mid-January 2014, also commits China's capital city to cut total emissions of particulate matter (PM) 2.5 by 5% in 2014.

Beijing was hit by weeks of hazardous smog in January 2013, prompting the central government to pledge tough new measures to improve air quality throughout the country and head off public disquiet about the environmental costs of economic growth.